You can get to know any large lenders , ( and even foreclosure attorneys, )and help them quietly/low key clear the books quickly of unwanted assets and replace with your co new construction,Last, I've gotten leads from again surveyors that are out searching for places to locate cellphone towers... they check out lots of sitesand most aren't suitable... so that's knowledge they would be glad to share (sell ) you cheaply!

Was this a burned out property or something crazy?

My question is will a lender do a conventional loan on a property with those breaker boxes considering there was a lawsuit for them burning houses down.

The last thing you want is to have unwanted attention/complaints about your property from neighbors.

I'm comfortable drafting documents (I'm a contracts manager by day), but I'm looking for a good resource to walk me through the process.I'm good friends with the seller and I've lived in the home for the past year so I'm not worried about being burned or surprised by issues. 

I can't think of a time where I have been burned by sharing my "secrets", in fact it is the opposite. 

I'm very excited to get started on this project, but want to make sure I don't dive in over my head and get burned right out the door.

You empty it , and cut holes and take it to scrap yard  .There are 2 ways to get rid of the oil , first , if the furnace still works , turn it to 80 degrees open some windows and burn it .

Just don't want you to get burned.

If the improvements were extensive then absolutely it would be a good move because the improvement exchange lets you limit your debt exposure and cash burn by using 1031 money for improvements.